Just did taxes...annoyed. Other people in the same boat?

[Anonymous]

It must get tiring carrying water for unpopular Trump administration policies all day on the internet. Good grief.

We're not dumbing down the country. Republicans don't want government to work, so they refuse to fund the IRS properly, so it can have enough workers to help Americans paying their taxes. I spent untold hours on the phone a few years ago with the IRS to get my identity protection pins, as I was a victim of ID theft. This is just more of the same. Purposely obfuscate the withholding tables and then require Americans to spend more of their time figuring out their actual tax liability. Like I said, good luck winning elections with that line.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why do people think it's acceptable to have to do their yearly taxes two or three times a year because the government is intentionally screwing with things? That's not ok.

Because we are dumbing down the country. At this point there are millions of Americans who have no idea how to figure out their taxes or figure out their withholding without hand-holding. Heck, even among the well-off here on DCUM, there are many who don't even understand their own withholding and what they mean. In the 4+ tax threads over the last week, there are many who don't know how to adjust their withholding below single filers.

Plus with a shrinking IRS, it is ridiculous that we have to pay so many people to come up with withholding estimators for employers so that it covers the several thousand situations of families. And inevitably, many are wrong and then because these filers have no idea what their withholding means, they blame the IRS for getting it wrong. Do it yourself, understand what you are withholding and get it right for your particular situation instead of using the same formula that covers your boss, the custodian and your child's teacher and expect that it will give you a more accurate picture of your own finances.

Use the calculator, make your own estimate of your income and adjust your withholdings. It takes like 30 minutes once or twice a year and you'll save yourself money from penalties or having to do estimated taxes every quarter.

+1

[Anonymous]

Reading this thread and peoples lack of understanding of their own financial situation much less how taxes work at a public policy level makes depressed about the future of our country. the DCUM crowd are highly educated well off elites...if they don't get it then how can you expect the average joe to be savvy about the long term financial future of our country. We deserve the leaders we get.

[Anonymous]

Anonymous wrote:Reading this thread and peoples lack of understanding of their own financial situation much less how taxes work at a public policy level makes depressed about the future of our country. the DCUM crowd are highly educated well off elites...if they don't get it then how can you expect the average joe to be savvy about the long term financial future of our country. We deserve the leaders we get.

Withholding tables reduced withholding by more than taxes were reduced. That is a problem. If someone’s tax dropped 200 dollars, withholding shouldn’t go down 450 dollars.

[Anonymous]

And yet...wait for it....if you had more money in your paycheck than you did last year, you could 'check' to make sure your withholding was correct.

That's what I did, sounds like many others here as well.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Reading this thread and peoples lack of understanding of their own financial situation much less how taxes work at a public policy level makes depressed about the future of our country. the DCUM crowd are highly educated well off elites...if they don't get it then how can you expect the average joe to be savvy about the long term financial future of our country. We deserve the leaders we get.

Withholding tables reduced withholding by more than taxes were reduced. That is a problem. If someone’s tax dropped 200 dollars, withholding shouldn’t go down 450 dollars.

This.

I assumed the withholding was accurate until July which is when I read about the Government Accountability report which showed that the withholding tables were misleading. I then calculated our estimated taxes for 2018 and increased our withholding sufficiently to cover the $2500-$3000 tax increase I expected for our $150K AGI . btw we never overwithhold so I was not counting on a refund and I understand the difference between a refund amount and total tax owed. The SALT cap was pretty widely known but I am not sure how many people were aware that they were also losing personal exemptions.

[Anonymous]

Anonymous wrote:And yet...wait for it....if you had more money in your paycheck than you did last year, you could 'check' to make sure your withholding was correct.

That's what I did, sounds like many others here as well.

But there was no way to check. I couldn't find a good way to estimate the net effect of all of the tax changes (SALT, changes to AMT levels, marginal tax rates, child care credits, loss of exemptions, etc.) And my calculations turned out to be very wrong because there were things I didn't know about, like if you don't hit the AMT one year then you get a credit back if you hit it the previous year.

Our HHI was $300K in 2018 and our taxes went down -- about $50K. We had to pay about $500, which is pretty close. But I have claimed zero exemptions on my W-4 and overwithold by $100 a paycheck, or $2,600, and didn't stop doing that after the tax cuts went into effect. If I didn't overwithhold, I would have owed $3,000. I am going to continue overwitholding.

Our HHI in 2018 was $285K and our taxes were $55K. So our effective tax rate went from 19% to 16%. However, we got a credit in 2018 of $5,991 for paying AMT in 2017. That credit more than offset all of the other changes -- meaning that our taxes would have gone up by a thousand dollars if not for that credit.

Also, since we didn't pay AMT in 2018, I assume we won't get that credit in 2019. That means our taxes will be higher in 2019. Maybe I should be overwithholding even more. Grr.

[Anonymous]

Anonymous wrote:

Anonymous wrote:And yet...wait for it....if you had more money in your paycheck than you did last year, you could 'check' to make sure your withholding was correct.

That's what I did, sounds like many others here as well.

But there was no way to check. I couldn't find a good way to estimate the net effect of all of the tax changes (SALT, changes to AMT levels, marginal tax rates, child care credits, loss of exemptions, etc.) And my calculations turned out to be very wrong because there were things I didn't know about, like if you don't hit the AMT one year then you get a credit back if you hit it the previous year.

Our HHI was $300K in 2018 and our taxes went down -- about $50K. We had to pay about $500, which is pretty close. But I have claimed zero exemptions on my W-4 and overwithold by $100 a paycheck, or $2,600, and didn't stop doing that after the tax cuts went into effect. If I didn't overwithhold, I would have owed $3,000. I am going to continue overwitholding.

Our HHI in 2018 was $285K and our taxes were $55K. So our effective tax rate went from 19% to 16%. However, we got a credit in 2018 of $5,991 for paying AMT in 2017. That credit more than offset all of the other changes -- meaning that our taxes would have gone up by a thousand dollars if not for that credit.

Also, since we didn't pay AMT in 2018, I assume we won't get that credit in 2019. That means our taxes will be higher in 2019. Maybe I should be overwithholding even more. Grr.

All these shell games for a fake tax cut. Sorry Republicans, but you come across as a bunch of scummy scammers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:And yet...wait for it....if you had more money in your paycheck than you did last year, you could 'check' to make sure your withholding was correct.

That's what I did, sounds like many others here as well.

But there was no way to check. I couldn't find a good way to estimate the net effect of all of the tax changes (SALT, changes to AMT levels, marginal tax rates, child care credits, loss of exemptions, etc.) And my calculations turned out to be very wrong because there were things I didn't know about, like if you don't hit the AMT one year then you get a credit back if you hit it the previous year.

Our HHI was $300K in 2018 and our taxes went down -- about $50K. We had to pay about $500, which is pretty close. But I have claimed zero exemptions on my W-4 and overwithold by $100 a paycheck, or $2,600, and didn't stop doing that after the tax cuts went into effect. If I didn't overwithhold, I would have owed $3,000. I am going to continue overwitholding.

Our HHI in 2018 was $285K and our taxes were $55K. So our effective tax rate went from 19% to 16%. However, we got a credit in 2018 of $5,991 for paying AMT in 2017. That credit more than offset all of the other changes -- meaning that our taxes would have gone up by a thousand dollars if not for that credit.

Also, since we didn't pay AMT in 2018, I assume we won't get that credit in 2019. That means our taxes will be higher in 2019. Maybe I should be overwithholding even more. Grr.

your ignorance about tax matters really comes through in this rambling post.

All you had to do last year was plug in your numbers to the calculator IRS has put out: https://apps.irs.gov/app/withholdingcalculator/

It will tell you exactly how much to withhold. Instead of taking wild guesses on your withholding for the next tax year fill this out as accurately as you can now and use that information to fill out your w-4. Then make sure you double check in late fall to see if you are on track.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:And yet...wait for it....if you had more money in your paycheck than you did last year, you could 'check' to make sure your withholding was correct.

That's what I did, sounds like many others here as well.

But there was no way to check. I couldn't find a good way to estimate the net effect of all of the tax changes (SALT, changes to AMT levels, marginal tax rates, child care credits, loss of exemptions, etc.) And my calculations turned out to be very wrong because there were things I didn't know about, like if you don't hit the AMT one year then you get a credit back if you hit it the previous year.

Our HHI was $300K in 2018 and our taxes went down -- about $50K. We had to pay about $500, which is pretty close. But I have claimed zero exemptions on my W-4 and overwithold by $100 a paycheck, or $2,600, and didn't stop doing that after the tax cuts went into effect. If I didn't overwithhold, I would have owed $3,000. I am going to continue overwitholding.

Our HHI in 2018 was $285K and our taxes were $55K. So our effective tax rate went from 19% to 16%. However, we got a credit in 2018 of $5,991 for paying AMT in 2017. That credit more than offset all of the other changes -- meaning that our taxes would have gone up by a thousand dollars if not for that credit.

Also, since we didn't pay AMT in 2018, I assume we won't get that credit in 2019. That means our taxes will be higher in 2019. Maybe I should be overwithholding even more. Grr.

your ignorance about tax matters really comes through in this rambling post.

All you had to do last year was plug in your numbers to the calculator IRS has put out: https://apps.irs.gov/app/withholdingcalculator/

It will tell you exactly how much to withhold. Instead of taking wild guesses on your withholding for the next tax year fill this out as accurately as you can now and use that information to fill out your w-4. Then make sure you double check in late fall to see if you are on track.

No, it doesn't have you just "plug in your numbers." That calculator requires you to do things like estimate your AMT credit using Form 8801, which requires you to find a number on your previous year's Form 6251, then do two pages of calculations, then "plug in" the bottom line. To do the IRS calculator I would have essentially had to do my 2018 taxes in advance in order figure out how much my withholding was off (that is, how much the government's own tables were off). I'm not doing that for 2019, I'll make sure I'm withholding 19% and leave it at that.

The only thing I was "ignorant" of was the AMT credit because I've paid the AMT every year for the past 10+ years and had no idea that you could get a prior year's AMT payment back if you didn't owe it in a subsequent year; that's a tax policy that has never applied to me. I confess I'm ignorant of how the adoption credit, foreign tax credit, and DC first time homebuyer credit work too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:And yet...wait for it....if you had more money in your paycheck than you did last year, you could 'check' to make sure your withholding was correct.

That's what I did, sounds like many others here as well.

But there was no way to check. I couldn't find a good way to estimate the net effect of all of the tax changes (SALT, changes to AMT levels, marginal tax rates, child care credits, loss of exemptions, etc.) And my calculations turned out to be very wrong because there were things I didn't know about, like if you don't hit the AMT one year then you get a credit back if you hit it the previous year.

Our HHI was $300K in 2018 and our taxes went down -- about $50K. We had to pay about $500, which is pretty close. But I have claimed zero exemptions on my W-4 and overwithold by $100 a paycheck, or $2,600, and didn't stop doing that after the tax cuts went into effect. If I didn't overwithhold, I would have owed $3,000. I am going to continue overwitholding.

Our HHI in 2018 was $285K and our taxes were $55K. So our effective tax rate went from 19% to 16%. However, we got a credit in 2018 of $5,991 for paying AMT in 2017. That credit more than offset all of the other changes -- meaning that our taxes would have gone up by a thousand dollars if not for that credit.

Also, since we didn't pay AMT in 2018, I assume we won't get that credit in 2019. That means our taxes will be higher in 2019. Maybe I should be overwithholding even more. Grr.

your ignorance about tax matters really comes through in this rambling post.

All you had to do last year was plug in your numbers to the calculator IRS has put out: https://apps.irs.gov/app/withholdingcalculator/

It will tell you exactly how much to withhold. Instead of taking wild guesses on your withholding for the next tax year fill this out as accurately as you can now and use that information to fill out your w-4. Then make sure you double check in late fall to see if you are on track.

We did that. It was way off.

[Anonymous]

I remember doing a calculator early in 2018 and it told me that I'd have to pay $1K. That's not a huge figure, so I left things alone. Just found out I'm getting the same refund as last year, about $4K. So the calculators aren't accurate.

It's not unreasonable for citizens to expect the IRS to withhold their taxes correctly. Especially when screwing with the tables was an UNABASHEDLY political move.

[Anonymous]

IRS shows initial drop in tax refunds of 8% on average

https://finance.yahoo.com/news/the-first-wave-of-tax-refunds-are-down-8-on-average-181001645.html

[Anonymous]

Anonymous wrote:I remember doing a calculator early in 2018 and it told me that I'd have to pay $1K. That's not a huge figure, so I left things alone. Just found out I'm getting the same refund as last year, about $4K. So the calculators aren't accurate.

It's not unreasonable for citizens to expect the IRS to withhold their taxes correctly. Especially when screwing with the tables was an UNABASHEDLY political move.

The calculator is an estimate. It gets more precise as you get closer to year end because more of your income is then earned vs. projected.

The IRS is not responsible for withholding your taxes. YOU ARE. Hence you need to stay on top of this. Its really not that hard. Do the calculator in the first quarter and then again in the fall and you will be generally OK.

I worked in the UK. There most people don't file a tax return. The government does their taxes for them. We would never allow such a system in the US given big brother concerns. The flip side is that you have to stay on top of things.

[Anonymous]

The government is purposefully misleading people. I wonder how much we are paying them to purposefully mislead us.